On March 26, the Financial Crimes Enforcement Network (FinCEN) issued an interim final rule (RIN 1506-AB49) narrowing the applicability of the beneficial ownership information (BOI) rule to foreign reporting companies.

The Financial Crimes Enforcement Network (FinCEN) announced that it is again going to enforce the beneficial ownership interest (BOI) rule that was enacted as part of the Corporate Transparency Act (CTA). But, FinCEN said on February 27 that it will not impose fines or penalties until after it finalizes new reporting rules that would narrow the BOI reporting rule to foreign reporting companies. The new reporting deadline is March 21, 2025.

On Feb. 26, the House Education & the Workforce Committee held a hearing focused on over-regulation of business. Titled “Unleashing America’s Workforce and Strengthening Our Economy,” the hearing focused on the adverse impact of a slew of recent regulations, including overtime pay (the white-collar exemption) and worker classification.

The last big-ticket item approved by the 118^th Congress was enactment of a continuing resolution (CR), HR 10545, that keeps the government funded through March 14, 2025. The House and Senate approved the measure by wide margins. The House vote was 366 to 34, with one member voting “present.” The 366 aye votes included 170 Republicans and all Democrats except the one (Rep. Jasmine Crockett of Texas) who voted present. The Senate vote, coming just minutes after midnight December 20 deadline, was 85 to 11. President Biden signed it into law on December 21. Thus, the threatened partial government shutdown was averted, despite a few hours on a Saturday during which funding for the government technically ran out.

On December 23, 2024, President Biden signed into law two pieces of legislation that will ease the burden on employers and insurance carriers that need to submit information to the IRS and employees on health care coverage. The Paperwork Burden Reduction Act (H.R. 3797) and the Employer Reporting Improvement Act (H.R. 3801) were championed by a bipartisan group of legislators eager to provide significant relief from paperwork burdens for small businesses.

After a series of court decisions and reversal and then a reversal of the reversal, the rule (Beneficial Ownership Information, or BOI rule) requiring most businesses to report to FinCEN (the Financial Crimes Enforcement Network) on their ownership is currently on hold, pending a judicial opinion on whether the law containing the BOI rule is constitutional.

Just as the 118^th Congress ended last month, then Senate Finance Committee chairman and now ranking member Sen. Ron Wyden (D-OR) offered a bill to contain private placement life insurance (PPLI). The bill died when the 118^th Congress adjourned sine die on January 3, but Sen. Wyden is expected to reintroduce his legislation early this year.

CMS is proposing actions in the Medicare Advantage (MA) and Medicare Part D prescription drug programs to continue to strengthen protections and access to care for people with Medicare. The proposed rule aims to hold MA and Part D plans more accountable for delivering high-quality coverage so that people with Medicare are connected to the care they need when they need it.

Donald Trump’s victory was declared when, at just about 5:30 a.m. on Wednesday, November 6, the media projected he had won swing state Wisconsin, taking him over the 270-vote electoral college count needed to win the presidency. 

Republicans will control the Senate in the incoming 119th Congress (2025-2026). The GOP’s undisputed win of 53 of the Senate’s 100 seats means Democrats have lost control of the upper chamber in the 119th Congress.

A number of key issues remain to be addressed by the outgoing 118^th Congress. They include the need to fund the government past the December 20 dates on which current funding authority expires. The government funding issues include extension of National Flood Insurance Program (NFIP) authority and funding.

Incoming President-Elect Donald Trump’s Administration is likely to roll back a plethora of regulations of concern to NAIFA members and their clients.

Four Democratic Senators have introduced legislation that would subject pass-through (non-corporate) business income to payroll (Social Security/Medicare) taxes. Currently, many pass-through businesses (S corporations, partnerships, sole proprietorships) characterize some of their business income as dividends or other non-wage income and thus avoid having to include it in the payroll tax base.

On September 26 President Biden signed into law the three-month funding bill that avoided a government shutdown on October 1. The continuing resolution (CR) extended fiscal year (FY) 2024 funding levels until December 20 and made few (none of them controversial) policy changes. So, the tough issues—e.g., FY 2025 funding levels, whether to block certain regulations (including the fiduciary rule)—were left to be resolved during the November-December lame duck session of the 118^th Congress.

On September 12, the Senate Finance Committee held a hearing to lay the groundwork for the 2025 tax bill effort to cut down on “tax avoidance.” The hearing highlighted proposals to improve tax equity in current law. It also focused considerable discussion on section 199A, the deduction for qualifying noncorporate business income.

The premium tax subsidies that allow lower-income individuals to get Affordable Care Act (ACA) health insurance free or at reduced cost are scheduled to expire at the end of 2025. If the current subsidies do expire, millions of low-income individuals will face significant health insurance cost increases. Extension of the subsidies will be a key issue in the 2025 tax bill and/or during the November-December lame-duck session of the 118^th Congress.

The ENABLE Act, a bill that makes permanent three provisions of the ABLE account law, passed the Senate under a unanimous consent agreement on September 19. The bill, the ENABLE Act, was introduced in the Senate by Sen. Bob Casey (D-PA), the author of the original ABLE Act, and Sen. Eric Schmitt (R-MO) and in the House by Rep. Lloyd Smucker (R-PA) and Rep. Don Beyer (D-VA).

A New York Congressman, Rep. Tom Suozzi (D-NY), is planning a long-term care conference for this spring. He wants wide participation to create and enact legislation to address the long-term care needs of the U.S. population.

Last month the U.S. Circuit Court of Appeals for the Fifth Circuit upheld the Department of Labor’s (DOL’s) new overtime (OT) regulation. The court ruled that the regulation does not violate the Fair Labor Standards Act (FLSA).

On October 3, the Internal Revenue Service (IRS) and Treasury issued new guidance, Notice 2024-73, on coverage requirements for long-term part-time employees (LTPTE), beginning in 2025. SECURE 2.0, enacted late in 2022, includes a provision requiring employer-sponsored retirement plans to allow long-term (those with service of two years or more) part-time (those who work at least 500 hours/year) to participate in the employer-sponsored retirement savings plan.